Baltic index falls to one-week low on weaker capesize, panamax rates

LONDON : The Baltic Exchange’s Dry Bulk Sea Freight index, which tracks rates for vessels transporting dry commodities, fell to a one-week low on Wednesday due to weaker rates for capesize and panamax vessel segments.

The main index, which monitors rates for capesize, panamax and supramax shipping vessels, was down 78 points, or 4%, at 1,874, lowest level since June 11.

The capesize index lost 218 points, or about 6%, to 3,442, its lowest level in a week

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased by $1,811 to $28,546.

Iron ore futures fell on Wednesday and were on track for a fifth session of declines, pressured by slowing demand for the steelmaking material in top consumer China.

The panamax index fell 28 points, or about 2%, to 1,378, snapping a 10-session winning streak.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, lost $247 to $12,405.

Among smaller vessels, the supramax index gained 4 points to 949, an over two-week high.

Elsewhere, marine war risk rates for ships transiting Israeli waters have spiked to around 0.7% following the escalation of tensions with Iran on Friday, three senior marine market sources told The Insurer.

Source: Reuters